Mr Tchenguiz said on Tuesday that his family trust would withdraw proceedings against Kaupthing bank, its lawyer and two partners at Grant Thornton after almost a decade of arguing. As a result, the bank will release a loan to, and security provided by, the family trust, as well as giving the trust an undisclosed sum.

But a spokesperson for Grant Thornton called Mr Tchenguiz's claims "ill-advised and baseless".

"We have always maintained that they ought never to have been brought, and their withdrawal vindicates our position," he...